Weaver Fintech Ltd. · JSE:WVR
Weaver Fintech — HomeChoice International — Investor Day (November 2018)
24 slides from Weaver Fintech's investor day presentation, Nov 1, 2018
Slide 1: Investor day, 1 November 2018
Investor day 1 November 2018 HomeChoice International plc 1
Slide 2: Who we are
Who we are HomeChoice HomeChoiceInternational InternationalPLC plc 2
Slide 3: Two divisions: aspirational retail and financial products
Two divisions: aspirational retail and financial products HomeChoice (Retail) FinChoice (Financial Services) • An omni-channel retailer in • A leading FinTech platform in the southern Africa offering her mass market providing innovative convenience and our own delivery loans, insurance products and
Slide 4: Our business in numbers
Our business in numbers Retail sales Loans disbursed Revenue R1.7bn R1.5bn R3.0bn + 16.8% + 17.5% + 12.7% EBITDA Customers Deliveries R800m 836 000 > 1 million + 14.1% Cash generated from operations R359m + 29.5% * 12 months to Dec 2017 HomeChoice International plc 4
Slide 5: A deep understanding of our customer
A deep understanding of our customer • An African woman, a daughter or granddaughter of customers before • 40 years old with 2 children • Knows us for quality, value and affordability • Earns R10 000 gross monthly, spends it carefully (74% of customers have an additional source of income) • Recent h
Slide 6: She buys aspirational retail and financial products suited to her lifestyle
She buys aspirational retail and financial products suited to her lifestyle HomeChoice International plc 6
Slide 7: A rapidly diversifying Retail business and growing Financial Services offering
A rapidly diversifying Retail business and growing Financial Services offering Sources of revenue R3.0 billion R434 million HomeChoice International plc 7
Slide 8: Provide an omni-channel offering with accelerating digital component
Provide an omni-channel offering with accelerating digital component 1% (2017: 1%) 3% 39% (2017: 3%) 57% (2017: 32%) (2017: 64%) 780 000 18 900 Facebook customers engage community on Instagram * 6 months to June 2018 HomeChoice International plc 8
Slide 9: Strategy
Strategy HomeChoice HomeChoiceInternational InternationalPLC plc 9
Slide 10: Our strategies
Our strategies HomeChoice International plc 10
Slide 11: Strategies to continue sustainable growth
Strategies to continue sustainable growth • Innovative product development for our growing customer base Innovative • Manage merchandise risk through strict adherence to buying cycle product • Introduce more flexible credit products and terms offering • Significantly expand insurance offering • Orac
Slide 12: Digital: Mobi-1st driving growth
Digital: Mobi-1st driving growth • Retail – our customer shops on her phone • Convenient – shop whenever she wants to • Digital growth – easily scaleable • Enables customer personalisation • All products available online • Digital-only products which drive traffic • Sales through digital channels no
Slide 13: Showroom offer
Showroom offer • Enhance customer experience • Showcase breadth of product range • Customers touch and feel our quality • Rooms-in-a-home layout • Offers in-store digital engagement • Sales agents advice and support • Full suite of services for her • Open an account and place an order • Collection p
Slide 14: Showroom formats
Showroom formats Small Large Flagship Maponya Mall East London Rissik Street • Size: 500m2 • Size: 1 200m2 • Size: > 2 000m2 HomeChoice International plc 14
Slide 15: Showroom dynamics and roll out plans
Showroom dynamics and roll out plans • Showroom plans • Opened: 5 in South Africa • Consider Botswana in 2019 • Plan to open: 3 - 5 per year • Long-term potential: 30 showrooms • Key features • Attracts 30% new customers (mix) • Click and collect > 80% of orders • High cash sales > 30% • Driving 35%
Slide 16: Delivery infrastructure unique in mass market
Delivery infrastructure unique in mass market 2 e-commerce enabled, single pick Last mile delivery through our own 64 (1 item) warehouses independent micro enterprises More than 1 million deliveries in 2018 Deliver door-to-door, or through SA Post Office Courier partners provide further support * 12
Slide 17: Distribution capability – engineered for e-commerce
Distribution capability – engineered for e-commerce CAPE TOWN GAUTENG • Newly built 2014, 20 000 m2, owned • Opened 2018, 12 000 m2, leased • Primary warehouse • Category specific warehouse – • Handles all inbound deliveries furniture, footwear, blankets • 34 000 storage pallets • 7 000 pallets • 7
Slide 18: Financial Services
Financial Services HomeChoice International PLC 18
Slide 19: Leveraging the Retail credit book for Financial Services
Leveraging the Retail credit book for Financial Services Vintage graphs: 5-year average (120+ days in arrears) Cumulative % of original accounts reaching arrears status 30% Retail – initial purchase Improving 20% Retail – repeat purchases credit risk FinChoice – initial loan 10% FinChoice – repeat l
Slide 20: A low-risk, efficient digital financial services provider
A low-risk, efficient digital financial services provider Disbursement mix • Efficient acquisition • HomeChoice brand and database • Controlled credit performance 1-6 mths 65% 12 mths 18% • Retail filter and credit expertise 24 mths 15% • Short-term (avg. term 14.4 months) 36 mths 2% • Low-value (av
Slide 21: Focus on digitally-enabled products
Focus on digitally-enabled products Launched in 2018: Launched in 2017: digital-only VAS digital-only facility products Small, A credit facility Flexible personal Suite of funeral New convenient loans on her mobile, loans repayable cover plans from products repayable in a repayable over 3 over 6, 12
Slide 22: Her mobi engagement driving our FinTech business
Her mobi engagement driving our FinTech business • Digital engagement provides her Digital sessions per hour – week days convenience and empowerment • Loan transactions occur 24/7 with 17:00 - 24:00 00:00 - 08:00 32% outside normal working hours • Call centre agents becoming “private bankers” of the
Slide 23: Our digital transformation journey
Our digital transformation journey HomeChoice International plc 23
Slide 24: Thank you
Thank you HomeChoice International plc 24
HomeChoice International — Investor Day (November 2018) on 6ix